The Warro Gas Project is an exciting undertaking for industry stakeholders, the local Warro community and the joint venture partners. The field has 7-10 trillion cubic feet (Tcf) in place and potentially 1-3 TcF of recoverable gas.
The field is situated in a convenient location onshore in the Perth Basin, approximately 200 kilometres north of Perth.
It is less than 35 kilometres east of both the Dampier-Bunbury Natural Gas Pipeline and the Dongara-Perth Parmelia Pipeline.
The Warro Gas Field (contained within Retention Leases 6 and 7) was discovered in 1977 by WAPET when the Warro-1 well intersected with a substantial gas saturated column. Further drilling confirmed a 390 metre gas column in what is called the “Yarragadee Formation”.
Transerv became involved in the project in November 2007 when it agreed to provide $3.6 million in seed capital as a loan to Latent Petroleum, which held full ownership of the Warro Gas Project and was progressing it as its sole focus. The loan agreement offered Transerv the right to earn a 10% interest in the promising Warro Gas Field.
Less than a year later Alcoa of Australia entered into a farm-in agreement with Latent Petroleum, at which time Transerv elected to exercise its right to convert the $3.6 million loan into a 10% interest.
Under the farm-in agreement signed in 2008, Alcoa may earn a 65% interest through funding a staged farm-in evaluation program, which includes a five-well drilling program, seismic surveys and production facilities for initial production.
On 23 March 2011, Transerv announced the acquisition of Latent Petroleum, which increased its interest in the Warro Gas Project to 35% after the completion of the farm-in by Alcoa of Australia. Latent Petroleum remains operator and is continuing to evaluate the Warro Gas Project on behalf of the joint venture partners.
In 2009 and 2011, Latent Petroleum drilled two wells (Warro-3 and Warro-4) and acquired a 3D seismic survey over the field. Gas was safely produced from both wells.
A group of independent experts based in the USA completed a detailed analysis of the available data (including 3D seismic data) on the Warro Gas Field in 2012. The analysis confirmed significant quantities of gas are held within the field with the potential to flow at high rates.
As a result of these conclusions the Warro Joint Venture decided in late 2014 to continue its evaluation of the field by the drilling of Warro 5 and 6 during the second half of 2015.